A non-profit organization that owns seven continuing care retirement communities sought to divest its only pure skilled nursing facility. The organization sold the property to a New York-based investor-operator partnership for $11.7 million. However, $1 million was held back at closing, which will be paid if the buyer can obtain a HUD loan on the building in the future.

The facility was also subject to a ground lease with the neighboring hospital at the time of marketing. The ground lease had to be renegotiated during the due diligence period to a higher lease rate to allow for a smooth transition.

The 56,880-square-foot facility was built in 1968 and expanded in 1978, 1983 and 1992. Although the property has seen recent operational struggles, the occupancy increased from 70 percent to 80 percent over the course of 2017.

Content Partners

Labor shortages, rising interest rates and other challenges confronting seniors housing operators have failed to blunt the bullish outlook for industry growth. While the availability of debt and capital to…